What Is the Easiest Way to Correct an Error

question 19

Multiple Choice

What is the easiest way to correct an error?

• A)First,make the correct entry that should have been made initially.Second,eliminate the effect of the incorrect entry by making the opposite journal entry.
• B)Update accounts via a journal entry that are required to bring the accounts up to date as of a certain date.
• C)First,eliminate the effect of the incorrect entry by making the opposite journal entry. Second,make the correct entry that should have been made initially.
• D)Make the correct entry that should have been done initially.

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Definitions:

Classical Economist

An economist who believes in economic theories that emphasize free markets, minimal government intervention, and the importance of self-regulating business cycles.

Inadequate Aggregate Demand

A situation where the total demand for goods and services in an economy is not sufficient to produce full employment.

Recession

A decline in real GDP for two consecutive quarters.

Lowering Tax Rates

The act of reducing the percentage at which income or corporate profits are taxed, which can affect economic behaviors and government revenues.